Shana Sissel Guest Blog with All About Alpha
More than a decade ago the world of alternative investments witnessed hedge-fund-inspired Investment Act of 1940 (40 Act) funds appear on the scene. Much like their private alternative counterparts, liquid alternatives offer valuable diversification benefits within traditional portfolios, but it’s important to keep our expectations in check. Unlike traditional hedge funds, liquid alternatives are limited by the 40 Act in how and what they can invest in. These limitations can curb their alpha-generating potential compared to their hedge fund counterparts. There are three primary structural limitations that liquid alternatives face under the 40 Act.
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Shana Sissel Guest Blog with All About Alpha
Read Spotlight Asset Groups Chief Investment Officer Shana Sissel’s blog post on All About Alpha.
More than a decade ago the world of alternative investments witnessed hedge-fund-inspired Investment Act of 1940 (40 Act) funds appear on the scene. Much like their private alternative counterparts, liquid alternatives offer valuable diversification benefits within traditional portfolios, but it’s important to keep our expectations in check. Unlike traditional hedge funds, liquid alternatives are limited by the 40 Act in how and what they can invest in. These limitations can curb their alpha-generating potential compared to their hedge fund counterparts. There are three primary structural limitations that liquid alternatives face under the 40 Act.